PayPal splashes $890 million on money-transfer startup Xoom

PayPal has just announced that it is acquiring Xoom, a San Francisco-based digital money transfer startup for a huge $890 million.

Xoom has transferred over $7 billion for its 1.3 million customers, and that's just over the last 12 months. Most of this business was done over mobile devices, and between friends and family, so you can see why PayPal would be interested in acquiring a company like Xoom. PayPal wants to see Xoom expand into other markets, with Mexico, India, the Philippines, China and Brazil.